What Does It Mean When Economists Say That the Fed

question 383

Multiple Choice

What does it mean when economists say that the Fed has attempted to "normalize" monetary policy after the Great Recession?

• A) The Fed has tried to use monetary policy to restore the unemployment rate to its normal full employment rate of around 5 percent.
• B) The Fed has tried to use monetary policy to raise excess reserves back up to normal prerecession levels.
• C) The Fed has tried to make all of the monetary policy actions used during the financial crisis a normal part of the monetary policy tool kit.
• D) The Fed has tried to use monetary policy to bring interest rates back to their historically normal levels.

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